My interview with Microsoft about why they're closing Ensemble Studios

Posted by Victor Godinez

2:29 PM, September 26, 2008

Here's the full transcript of my e-mail interview with Bonnie Ross, general manager of the Halo business at Microsoft, about why Ensemble Studios is being closed once work is done on Halo Wars:

Q: What precipitated the decision to close Ensemble? Based on Bruce Shelley's blog, it sounds like this decision was as much a surprise to the employees at Ensemble as it was to the gaming community.

A: Microsoft Game Studios is always evaluating its business model to determine what is best for both gamers and the company. Many factors were considered to make this difficult decision, and we feel this move will help us better align with our goals for the near future.

Q: Why make the decision to close Ensemble before Halo Wars was released? Wouldn't it have made more sense to see what kind of sales numbers the game produced?

A: We are confident that "Halo Wars" will do brilliantly in sales figures, especially with all the great feedback it has received in behind-closed-doors demos. Our decision to announce this before the game's release is rooted in an evaluation of the larger strategy and direction of MGS and Ensemble, and did not rest solely on "Halo Wars." Additionally, we had originally planned to move Ensemble to a new location in Plano, Texas and Ensemble employees were starting to consider buying new homes. We wanted to prevent people from uprooting unnecessarily. This was a difficult business decision and it impacts our employees and their family's lives. "Halo Wars" is a great game created by the Ensemble team. We want the team to be proud of what they created, but also feel that they have the time to make decisions for their future whether it's with Microsoft Game Studios, the new studio some of the Ensemble employees are forming or elsewhere.

Q: When Microsoft says the decision to close Ensemble was "fiscally-rooted," what does that mean? Was Ensemble not hitting revenue/profit goals?

A: Ensemble's "Age of" franchise has always sold very well and we anticipate "Halo Wars" will be successful as well. MGS encompasses many studios worldwide including Lionhead, Rare, ACES, Halo and Turn 10, and we need to evaluate what fiscally works for the entire organization so we can continue to focus on delivering high-caliber games to the community.

Q: Was there any discussion about spinning off Ensemble into a standalone studio, as Microsoft did with Bungie? If not, why not?

A: We cannot share what was discussed internally at this time, but we know key members of Ensemble are planning to form a new studio. We have no details of the new studio yet, but we do anticipate continuing our relationship with them so you should expect to see their titles on Xbox 360 and Windows.

Q: Halo Wars aside, Ensemble has been predominantly a PC-focused developer. Does the closure signify that console games will be more of a focus for Microsoft going forward, with less emphasis on PC titles? Can you tell me how many PC vs. console games are currently in development at Microsoft-owned studios?

A: I'm not at liberty to discussed unannounced titles, even just by the numbers, but I can assure you the Windows platform remains a large focus for Microsoft, despite our growth in console development. In terms of revenue, Windows is far and away the largest gaming platform in the world, so it's an incredibly important part of Microsoft's gaming business. Games for Windows is dedicated to leveraging Windows as a unique gaming platform - different, but equally important as the Xbox 360. With PC gaming on the rise, we are excited to support Windows as a gaming platform and continue publishing great PC games.

Q: Alternately, does the Ensemble closure and the Bungie spin-off signify that first-party, exclusive games are no longer as important as they once were?

A: Not at all. Microsoft Game Studios is committed to creating and innovating in the first-party game space. Internal development teams and first-party partners that create exclusive, compelling Xbox 360 and Live gaming experiences are key to our strategy. Microsoft is committed to working internally and with our third party developers to ensure the best games are on Xbox 360. Even with cross platform games, we've seen that more people play games such as "Call of Duty 4," "Madden NFL 09" and "Grand Theft Auto IV" on Xbox 360 than on other consoles.

Q: What sorts of games will the new studio focus on, both in terms of genres and platforms? Where will that studio be based?

A: We have no information about the new studio yet but will be excited to share more information when it's available.

Q: How many employees does Ensemble currently have?

A: 102

Q: Apparently Ensemble was working on a Halo MMO at one point. Did the cancellation of that game play a role in the decision to close Ensemble?

A: The decision to close Ensemble was based on the future on MGS, so no, past projects were not factors here.

Q: Are you concerned about employees at Ensemble being motivated to complete Halo Wars when they know they'll be laid off as soon as their work is completed? Was there any discussion of having another studio take over development on Halo Wars?

A: Ensemble is very professional and since the announcement has shown a very positive determination to make "Halo Wars" the best game possible. As you have seen from the early previews, "Halo Wars" is shaping up to be both a great RTS and Halo experience. Ensemble has created a great game and will continue to develop, test and support "Halo Wars" in the same way it has since the title's inception. Microsoft Game Studios and Ensemble will see the title through launch in early 2009, and the new studio and MGS will maintain its commitment to support the game post-launch.